As an economist, I would be remiss if I did not say that this was very very appropriate and sound financial behaviour. The main purpose of the lowering of interest rates was to increase debt while increasing asset values. Matching the debt load against the increase in value of the asset is very rational and astute behaviour. Not to do it would be very unwise in an economic sense. The real problem was the increase in money supply for supply side economics that do and did not work. Hidden inflation in house prices uncaptured by the consumer price index have led to immiseration growth under recent governments, putting the world economy into the liquidity trap that 'underconsumption' economists have been warning about for centuries. I am surprised by the ignorance shown of economics by Harpers and the Bank of Canada's teams. They lead to a path of under development and backwards economics. Mulcaur seems to understand economics very well for a socialist.
Arthur
http://www.torontosun.com/2012/05/28/mulcair-remortgaged-home-11-times
"Often when the sun shines, the wind don't blow. Often when the wind blows, the sun don't shine. Occasionally, the sun shines and the wind blows and the technologies that benefit allow for combinations to sometimes work." Arthur Lake 2015
"We often know more than we can tell .." MIchael Polanyi
"We 'always' know more than we can tell .." Arthur Lake 2015
